Markets in Asia fluctuated on Friday as traders struggled to build on a rally in New York, with focus on the impact of the Ukraine war, surging inflation and Federal Reserve plans to fight it.
The crisis in eastern Europe has forced investors to reassess their outlook for the global economy because of the expected surge in already soaring prices, which some commentators warn could lead to recessions and stagflation.
Wall Street gained more healthy gains as data showed filings for US unemployment benefits hit their lowest level since September 1969, while business activity hit an eight-month high in March.
Even as speculation swirls around the Fed's drive to rein in inflation, it came as it was speculated that it would turn more hawkish. Tech firms are more susceptible to higher borrowing costs.
The White House warned that Russian President Vladimir Putin could use chemical, biological or even nuclear weapons as he grows more frustrated about his campaign in Ukraine, which is being bogged down.
That comes after US President Joe Biden said earlier this week that the Russian leader's back is against the wall, and the more his back is against the wall, the greater the severity of the tactics he may deploy. Analysts said the gain on US markets could be attributed to the united front presented in Brussels against Putin by NATO, the G 7 and the European Union, and hope that a ceasefire can be reached.
The groups unveiled a series of new sanctions against Moscow over its invasion, though European nations did not announce a ban on imports of Russian oil, which helped push crude lower Thursday. Both main contracts were flat on Friday.
The commodity is elevated and analysts warned that it could spike at any time.
Oil is trading a bit lower after the EU leaders could not table unanimous support for a Russian energy embargo, said Stephen Innes, head of SPI Asset Management.
The EU embargo was a low-probability outcome, despite the fact that oil is only trading a few dollars more down. It's tough to be short oil as US inventories continue to dwindle as we are bound to have more supply shocks in the future. The yellow metal went up sharply after a move to restrict Moscow's ability to use the Russian central bank's gold reserves to circumvent Western sanctions.
Equity markets in Asia were mixed in early trade.
Tokyo, Hong Kong, Taipei, Manila and Jakarta slipped, though Sydney, Seoul, Singapore and Wellington edged up.
Brent crude in the North Sea was UP 0.1 percent at $119.14 per barrel.
West Texas Intermediate: DOWN 0.1 percent at $112.23 per barrel.
Dollar yen: DOWN at 121.81 yen from 122.38 yen late Thursday.
New York -- DOW: UP 1.0 percent at 34,707.